Investing 15-01-2024 18:05 28 Views

Redditor Claims To Have Built a Trading Bot That Earns Bitcoin Automatically – But Does It Really Work?

A Redditor’s claim about a Bitcoin trading system that earns Bitcoin through calendar trading has sparked debate within the crypto community. Image by Kerem Goktug Kaya, DALL-E 3.

A recent Reddit post has ignited heated debate within the r/CryptoCurrency community, drawing both intrigue and skepticism. The post, authored by Redditor kbxads claiming to have cracked the code to earning Bitcoin with ease, details a highly specific trading strategy involving bots programmed to buy and sell Bitcoin at certain times each month.

While the supposed strategy produced astronomical returns in hypothetical backtesting, commenters were quick to point out the implausibility of reliably timing Bitcoin’s volatile price action. They further highlighted flaws in the Redditor’s methodology, noting that any predictable pattern would likely vanish once exploited by real-world traders.

Calendar-Based Trading System Claims to Earn Bitcoin Through Monthly Cycles

The Redditor claims to have analyzed Bitcoin’s historical pricing data and identified certain recurring trends. They believe that demand for Bitcoin fluctuates depending on the date.

During backtesting, by selling near the 1st of each month, then repurchasing around the 15th at a lower price, the Redditor asserted they have turned 1 Bitcoin into 15 in just 5 years.

“My insight is that people have the most money at the start/end of a month and least in the middle. They get salaries around the 30th and they have bills to pay around the 15th,” the post read. “Armed with this insight, I calculated it all with Bitcoin historical prices on Spreadsheet from Jan 2015 to Jan 2023.”

Source: kbxad’s Excel spreadsheet, detailing backtesting buy and sell orders to turn 1 BTC into 15 in 5 years.

The user said they plan to put real money behind this trading strategy, despite acknowledging that liquidity issues could arise once the Bitcoin holdings get too large. They promised to report back in 5 years on whether the trading bot actually delivered the returns suggested by historical backtesting.

Skepticism Toward Redditor’s Trading Bot Approach

The Redditor’s claim elicited skepticism, with many dismissing the idea as unrealistic.

“You do realize if it was easy enough for you to find, EVERYONE would have found it, especially the financial world,” a Redditor voiced their skepticism. “This has got to be bait, and I’m [not?] falling for it.”

“I am skeptical, because you say with 100% certainty, that you found a way to game the system. Many have claimed that and all have failed,” another Redditor replied.

While some clung to hope the trading system could work, most agreed the chances of reliably predicting Bitcoin’s prices are slim to none. The consensus seems to be that promised results seem detached from reality and any advantage would disappear once exploited by any number of people. Still, the Redditor’s confidence in their strategy seems high.

Time will tell whether this controversial approach manages to earn any Bitcoin or simply falls prey to the same pitfalls that have foiled countless trading tactics before it. For now, the cryptocurrency community seems highly doubtful, but slightly curious to see the final results in 5 years—if the Redditor lasts that long.

The post Redditor Claims To Have Built a Trading Bot That Earns Bitcoin Automatically – But Does It Really Work? appeared first on Cryptonews.

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